Get Serious About Saving with a Goal-oriented Savings Account

Get Serious About Saving with a Goal-oriented Savings Account

Do you remember those New Yearís resolutions you made at the beginning of the year? How many have you kept? If youíre like most people, if you didnít abandon them after the first week, you most likely did sometime within the first half of the year. R

Published Friday, September 5, 2014

Do you remember those New Year’s resolutions you made at the beginning of the year? How many have you kept? If you’re like most people, if you didn’t abandon them after the first week, you most likely did sometime within the first half of the year. Research has proven over and over that New Year’s resolutions don’t work but, surprisingly, setting specific goals does. In fact, one particular study by a psychology professor at Dominican University in California found that people are 42 percent more likely to achieve their goals simply by writing them down.

 

So, instead of just maintaining a traditional savings account in which you deposit money sporadically when you have a little extra, it’s time to get serious about your savings goals. The good news is many banks, credit unions, and online institutions are making it easier than ever to reach your goals by offering goal-oriented savings accounts. They are typically available in one of the following varieties: registries, savings accounts, or subaccounts that are joined to a regular checking or savings account. Unlike long-term college and retirement plans, these accounts are geared more for short- and medium-term goals, such as buying a vehicle, taking a vacation, or saving for a down payment on a house. Most institutions will allow you to open several of these accounts and name them according to your individual goals.

 

Once you know exactly how much you need to save for a particular goal, your goal-oriented savings account provides access to tools that enable you to determine how much you’ll need to save each week or month, and for how long, in order to reach your goal. While it’s easy to withdraw money from a regular savings account for the latest gadget or those new shoes and matching handbag you think you must have, a goal-oriented savings account helps keep you on track. This type of account discourages spending temptations by limiting withdraws, charging a fee for them, or restricting them completely until the end of the term.

 

It’s true that goal-oriented savings accounts are stricter than regular savings accounts, but many of them also offer greater benefits. For example, some accounts allow family members and friends to contribute to your goals. This makes gift giving for special events easy and convenient. Other institutions offer higher interest rates, cash back rewards, and other bonuses for staying on track and meeting your goals.

 

Before opening a goal-oriented savings account, it’s important to understand the terms and conditions associated with that account. Make sure there are no monthly fees or other hidden costs. Also inquire about minimum daily balance requirements so you know how to avoid costly penalties at the end of each month.

 

For more information on setting up your goal-oriented savings account, talk to a representative from your bank or credit union, or click on the following links.

 

www.smartypig.com

www.mybanktracker.com/news/2014/01/10/4-free-goal-oriented-savings-accounts-help-tackle-financial-goals/

www.bargaineering.com/articles/kick-start-savings-goalbased-accounts.html

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